Walmart to Boost U.S. Antibiotic Supply 💊

Kroger Co. reported second-quarter net income of $609 million, up from $466 million a year earlier, as the grocery giant raised its full-year guidance. Adjusted net earnings totaled $695 million, surpassing last year’s $681 million, while net sales edged up to $33.94 billion from $33.91 billion in Q2 2024. Excluding fuel and specialty pharmacy, sales increased 3.8%, reflecting strong performance in pharmacy, e-commerce, and fresh categories.

For the first half of 2025, Kroger’s net income reached $1.48 billion, up from $1.41 billion, with adjusted net earnings of $1.69 billion, compared with $1.73 billion in the same period last year. The company boosted its full-year adjusted EPS guidance to $4.70–$4.80 from $4.60–$4.80.

Kroger now projects full-year comparable sales to grow between 2.7% and 3.4%, up from its previous forecast of 2.25% to 3.25%.

✂️ Cost Cutting: Kroger is cutting costs by closing about 60 underperforming stores and reducing nearly 1,000 corporate positions. The company is also reviewing non-core assets to streamline operations and focus on high-value areas.

🤖 AI Time: Kroger is accelerating its adoption of artificial intelligence to enhance operational efficiency, optimize pricing, and improve order fulfillment. The company is leveraging decades of loyalty program data and its 84.51° analytics division to generate billions of personalized recommendations.

❌ Unfriended: Kroger is reassessing its partnership with Ocado, raising the possibility of closing some automated warehouses as it leans on store-based e-commerce for faster delivery. Shares of Ocado fell sharply after the grocer indicated a strategic review of its facilities to improve profitability.

Walmart has entered a partnership with USAntibiotics, the country’s only remaining producer of amoxicillin, and wholesaler ClarusOne Sourcing Services to expand access to domestically manufactured antibiotics.

Under the deal, USAntibiotics will supply millions of doses directly to Walmart pharmacies and to McKesson for nationwide distribution. The move supports Walmart’s pledge to invest $350 billion in U.S.-made products by 2030.

🇺🇸 Make America Healthy: According to USAntibiotics, its 394,000-sq-ft Bristol, Tennessee facility can produce enough amoxicillin to meet the nation’s demand fully. Its president, Patrick Cashman, said the collaboration represents a commitment to “America’s health security” by supporting local manufacturing of critical generic medicines.

💊 Pill Plans: The partnership follows Walmart’s recent investment in pharmacy infrastructure, including a new 102,000-square-foot central fill facility in Maryland that can process up to 100,000 prescriptions daily. Two additional sites in Phoenix and Missouri are slated for 2026.

Amazon’s push into same-day grocery delivery has unexpectedly boosted Instacart, according to its incoming CEO, Chris Rogers. After Amazon expanded perishable grocery deliveries to 1,000 U.S. cities last month, supermarket chains turned to Instacart for support, Rogers said at a Goldman Sachs conference earlier this week, according to Business Insider.

The company saw immediate outreach from retail partners looking to strengthen their delivery options. Rogers noted that Instacart’s gross transaction values in markets where Amazon is piloting its new service have remained steady, showing little impact so far.

Instacart is also broadening its offerings beyond delivery, building out advertising and technology tools such as electronic shelf tags to help retailers compete. Rogers compared the current moment to 2017, when Amazon’s Whole Foods acquisition led more grocers to adopt Instacart.

The delivery app, which already partners with major chains like Aldi and Costco, views Amazon’s expansion as an “opportunity to go deeper” with existing clients.

U.S. wholesale inflation eased in August, with producer prices falling 0.1% after July’s sharp rise, according to Bureau of Labor Statistics data. Annual wholesale inflation cooled to 2.6% from 3.1%, offering a temporary reprieve.

The decline was driven by a 1.7% drop in trade services, reflecting slimmer retailer and wholesaler margins. Economists caution this may mean businesses are absorbing tariff costs for now, but could later pass them on to consumers.

Excluding volatile components like food, energy, and trade services, prices rose 0.3% in August, pushing core inflation to 2.8% year-on-year. Durable goods prices climbed for a third straight month, highlighting tariff-related pressures.

Analysts say the data show tariffs are not yet causing across-the-board price spikes, though underlying goods inflation remains elevated. Investors took the report as a sign that the Federal Reserve will proceed with interest rate cuts this month.

Apple’s iPhone 17 series launched to record-breaking pre-orders in China, underscoring the brand’s resilience in a highly competitive market. Within the first minute of sales on JD.com, orders surpassed the first-day volume of last year’s iPhone 16, with the 256GB standard model proving most popular, according to South China Morning Post.

The surge excluded the iPhone Air, Apple’s thinnest handset yet, which faces regulatory delays over eSIM approval in China. Even so, overwhelming demand caused Apple’s website to crash, and launch-day pick-up slots in Shanghai sold out within 20 minutes.

According to reports, by Saturday morning, buyers in Guangzhou faced delivery waits until mid-October. Analysts say the iPhone 17’s diverse line-up has boosted appeal across user segments, helping drive strong demand.

Global shipments of the iPhone 17 series are projected to rise 3.5% from last year, with the Pro models leading sales. The iPhone Air, once cleared for release, is expected to perform even better than its predecessor, the Plus model.

FedEx will implement a 5.9% average increase on U.S. package shipping services starting January 5, 2026, covering both domestic and international shipments. The company will also raise several surcharges, including fees for additional handling, oversized items, delivery areas, residential delivery, and inbound processing.

FedEx Freight rates will rise by either 5.9% or 6.9% depending on the service, while increases are also planned for Ground Economy, Ground Multiweight, and international offerings.

The new hikes mirror FedEx’s annual increases in 2024 and 2025, in line with UPS’s yearly adjustments. Industry analysts note that while surcharges are rising, the increases are less steep than last year, especially for bulky packages.

The changes come as shippers continue to face record-high delivery costs, with discounts waning and demand for large-package handling driving up expenses.

After months of disruption from U.S. tariff changes, Chinese e-commerce platform Temu is re-entering the American market with significant price cuts to regain ground against rival Shein Group. According to a Bloomberg report, prices for some of Temu’s best-selling items have dropped by an average of 18% since April, with certain products seeing reductions of up to 60%.

The company was hit hard after President Donald Trump ended the de minimis tariff exemption, which previously allowed small parcels to enter the U.S. duty-free, causing Temu’s sales to plunge more than 30% in June and continue falling through July and August.

Temu has also stopped charging import fees that had previously pushed prices higher, while encouraging merchants to lower costs in exchange for better app visibility ahead of the U.S. holiday season.

DHL Supply Chain is expanding its healthcare logistics footprint with the acquisition of U.S.-based SDS Rx, a provider of final-mile delivery and specialized transportation for long-term-care facilities and specialty pharmacies. The deal underscores DHL’s push into the growing healthcare distribution market, where demand for fast, temperature-controlled deliveries is rising.

SDS Rx, operating from over 200 U.S. locations, will bolster DHL’s healthcare network by adding final-mile logistics services.

This is DHL’s second healthcare acquisition in 2025, following its March purchase of CryoPDP, which handles clinical trials and cell and gene therapies. Analysts note that specialty pharmacies, which deliver high-cost, time-sensitive medicines, now account for roughly half of U.S. prescription drug spending.

Deloitte has released its 2025 holiday sales forecast, projecting that ecommerce sales will grow by 7% to 9% compared to last year's figures. This growth is expected to push online spending to a total of between $305 billion and $310.7 billion from November to January.

The consulting firm's analysis shows that online sales will continue to outpace overall retail growth, which is predicted to be a more modest 2.9% to 3.4% year-over-year.

Deloitte's forecast for holiday sales—totaling $1.61 to $1.62 trillion from November 2025 to January 2026—is consistent with earlier projections from Salesforce.

Potbelly will be acquired by convenience store operator RaceTrac in a $566 million all-cash deal. The deal values Potbelly shares at $17.12 each—a 47% premium over the previous close—and is expected to close in Q4 2025

Shares of Potbelly surged over 30% following the announcement, adding to a 75% gain so far this year. The Chicago-based sandwich chain operates more than 445 stores across the U.S. and is aiming to expand to 2,000 locations through franchise-led growth.

RaceTrac, headquartered in Atlanta, runs more than 800 convenience stores across 14 states. CEO Bob Wright said the acquisition strengthens Potbelly’s growth path while delivering immediate shareholder value.

This marks RaceTrac’s second major acquisition, following its 2023 purchase of Gulf Oil, and underscores its broader strategy to diversify into food service alongside its fuel and convenience operations.

Black Rock Coffee Bar has raised $294.1 million in its U.S. initial public offering, valuing the Scottsdale-based drive-thru cafe chain at about $956 million. The company priced 14.7 million shares at $20 each, above its marketed range, signaling strong demand despite tariff pressures and inflation.

The IPO is one of the most notable consumer listings in recent years, testing investor appetite for food-and-beverage brands. Founded in 2008, Black Rock operates drive-thru coffee bars selling coffee and energy drinks, competing with chains like Starbucks and Dutch Bros.

The company is the first U.S. restaurant to go public since Cava in 2023 and will begin trading on the Nasdaq under the symbol BRCB.

UK supermarket giant Sainsbury’s has called off discussions to sell its Argos unit to Chinese e-commerce group JD.com, just a day after confirming negotiations were underway.

The retailer said JD.com wanted to proceed only on revised terms it deemed unfavorable to shareholders and stakeholders. Sainsbury’s reaffirmed its forecast of around £1 billion in retail operating profit for 2025–26 and stressed its commitment to strengthening Argos, Britain’s second-largest general merchandise retailer.

The company said it will expand Argos’ range, boost digital capabilities, and improve customer relevance to drive growth. Argos, acquired by Sainsbury’s in 2016 for £1.1 billion, operates over 1,100 collection points and remains a key part of its strategy.